Uganda to resume work on 600-MW Karuma hydropower project

Uganda has received a US$500 million credit from China that will allow for construction of the 600-MW Karuma hydropower project, sources have reported.

Construction of the $2 billion hydroelectric plant was supposed to have begun by the end of this year before the project stalled due to a lack of funds.

Uganda said China's investment will be added to $700 million in established government co-financing, with the remainder to be raised from unnamed development agencies. Ugandan president Yoweri Museveni had said in April 2009 that he intended for the country to finance the project itself.